Recently, Jiangsu Shenghong Petrochemical Industry Group and the Saudi Arabia Mining Company signed a memorandum of cooperation as regards to blue ammonia in Riyadh, Saudi Arabia. The two sides will carry out in-depth cooperation in blue ammonia procurement, hardware facility sharing, etc., and are committed to building a mutually beneficial and long-term friendly strategic partnership.
Recently, the SEATEAM transport ship laden with 25,000 tonnes of blue ammonia departed from the port of Damman, Saudi Arabia, and is expected to arrive at the Shenghong Petrochemical Liquid Chemical Terminal in Lianyungang, Jiangsu Province, in about 18 days.
The Shenghong Petrochemical Industry Group is a leading high-tech enterprise in the fields of chemical refining, new energy and new materials in China. It operates the largest single-process 16 million tonnes/year refining and chemical integration project as well as others in China. Its process technology and production capacity of photovoltaic-grade EVA, acrylonitrile and other products are at the forefront of the world.
Founded by the Saudi government, the Saudi Mining Company is the largest commodity-diversified metal and mineral company in the Middle East and one of the top ten mining companies in the world. The company relies on world-class phosphate, aluminum ore, industrial minerals, copper concentrate and other resources to carry out diversified international business.
It is understood that ammonia, as an important basic raw material, is widely used in chemical industry, light industry, fertilizer, pharmaceutical, synthetic fiber and other fields. According to relevant data, the current global ammonia production is about 253 million tonnes, of which 98% is produced by fossil energy, with its associated carbon emissions accounting for 1.8% of the world, making it a major contributor to global carbon emissions. In the process therein, Saudi mining companies have introduced advanced technology for carbon capture, which effectively reduces carbon emissions, thus producing high-quality and environmentally friendly blue ammonia products.
According to the cooperation agreement, the two sides will reach a long-term cooperation in the procurement of blue ammonia. Ayman, global director of liquid ammonia business of Saudi Mining Company, said that it will maximize the guarantee for Shenghong Petrochemical in terms of price competitiveness and priority supply of goods. At the same time, it will use the advantages of Shenghong Petrochemical's storage tanks and docks to align with the regional allocation business model for liquid ammonia to promote the low-carbon and green development of the industry.
Shenghong Petrochemical is currently the largest acrylonitrile producer in China, with a production capacity of 780,000 tonnes/year, which strongly guarantees the supply of raw materials for downstream carbon fiber and composite materials, special engineering resins and other national strategic industries. The company is accelerating the construction of new acrylonitrile devices at the rate of 260,000 tonnes/year, and total production capacity is on the cup of reaching 1.04 million tonnes/year, ranking at the forefront of the world.
Wang Yifei, general manager of the marketing center for the Shenghong Petrochemical Industrial Group, said that ammonia is one of the main raw materials for acrylonitrile production. Under the background of the deepening in the comprehensive strategic partnership between China and Saudi Arabia, the cooperation will effectively expand the global level of the company's raw material procurement, provide strong support for the stable supply of raw materials for enterprises, and make greater contributions to global carbon emission reduction.
